April 2 (Reuters) - Australia's Austal ( AUTLF ) said on

Tuesday it had considered an A$1.02 billion ($661.88 million)

takeover offer from South Korea's Hanwha Ocean and

it was not "satisfied" that the deal would be approved by

Australian and U.S. regulators.

The defense contractor and shipbuilder said Hanwha's

offer was for A$2.825 per share, representing a premium of 28.4%

to Austal's ( AUTLF ) last closing price.

In November, Austal ( AUTLF ) signed an initial agreement with the

Commonwealth of Australia which would see the company being

selected as the Commonwealth's strategic shipbuilder at

Henderson, Western Australia.

Austal ( AUTLF ) is also a prime contractor designing,

constructing and sustaining ships for the US Navy.

It said that Hanwha's offer is subject to regulatory

approvals including Australia's Foreign Investment Review Board

(FIRB) and U.S. Defense Counterintelligence and Security Agency.

"The company is open to further engagement if Hanwha is able

to provide certainty on whether a transaction would be

approved," Austal ( AUTLF ) said in a statement.

($1 = 1.5411 Australian dollars)